Centre must announce direct cash transfer to poor to increase purchasing power: Gehlot

Rajasthan Chief Minister Ashok Gehlot on Wednesday demanded that the Centre announce direct cash transfer to the poor, daily wagers and small shopkeepers to increase their purchasing power, amid the novel coronavirus-induced lockdown.

This, he said, will give a boost to industries and the economy.

The Centre also needs to ensure that banks give loans to micro, small and medium enterprises (MSMEs), the chief minister said.

"The central government has begun announcements regarding an economic package, we will have to wait for complete details and see how these measures are implemented. The need of the hour is to transfer cash to the poor people, labourers, small shopkeepers, daily wagers and destitute," Gehlot tweeted.

Prime Minister Narendra Modi during his address to the nation on Tuesday evening announced a Rs 20 lakh crore special economic package and the initial details of the stimulus were unveiled by Sitharaman on Wednesday.

"The government must announce direct cash transfer to poor people and money should also be given to MNREGA labourers so that they have money in their pockets, which will generate demand, increase their purchasing power. This will give a boost to our industries and economy, Gehlot said.

He said measures have been announced for the MSME sector but it will have to be seen that how these are implemented.

"The MSME sector is facing a lot of hardships and banks are reluctant to give loans even with guarantees. Now how would they give loans without guarantees, as the government has announced," the chief minister said.

"The central government needs to ensure banks give loans to MSMEs. We did it in the state to support MSMEs, we brought an ordinance, then an Act that the state government will not ask for any approvals from MSMEs for three years. Likewise, the central government needs to ensure MSMEs get loans without guarantees," he said.